January 2, 2019

Money doesn’t fall from the sky but if you have done
proper investment planning, they can grow like one. Whether you are approaching
25 or big 4-0 in life, you are never too late or early to start planning for
your own retirement. The moment you reached the golden age you’d want the peace
of mind of knowing that you have a stable bank account and a roof over your
head.

If your retirement plan is poorly done, you will suffer in your later
life. Thus, it would be ideal to start thinking about saving for your retirement
as soon as you begin earning your first paycheck. If you planned for your
retirement early, it will make the biggest difference in your retirement age.
Whether it is investing condos in Penang
or bank in your money in fixed deposit. We are about to list down reasons why
you need to start planning for your retirement now.

1. Capitalise on
compounding interest

Are you aware that compounding
interest makes the biggest difference between the beginning of your
retirement? The sooner you begin saving, the more time your money can grow.
Plus, each year’s gains will generate bigger gains the following year.

For instance, if you start saving RM 1000 at age 25
for 30 years in a tax-deferred retirement account with a 5% annual return, by
the time you reach the retirement age of 55 your investment would have grown to
RM 835,726.38. In contrast, if you start saving the same amount of money every
month with the same percentage of annual return at age 35, your money will only
grow to only about RM 412,746.31 by the time you retire.

2. Retiring
early

Yes, you heard it right. You can retire early, isn’t
that your ultimate goal? Imagine to be kicking back at home at only 45, sipping
some coffee by your fresh lawn or pool side and never have to worry about being
late for work or meeting deadlines. If you keep tabs on your spending from a
young age and start saving for your retirement in 20s, you are more likely to
reach a state of financial independence at a younger age.

There are studies shown that those who have achieve
earlier retirement are significantly healthier due to higher quality life and
reduced stress. If you retire early, it also means that you have more energy to
travel and live in exotic places. You could also start exploring hobbies that
you have always dreamed of.

3. Lesser
insurance coverage

It is also the time for you to start thinking about
getting insurance coverage for yourself. Your rates increased as you get older,
assuming that you age well without the slightest hint of illness. One day, your
health has taken a serious hit, you will be deemed as ‘high risk’ and will be
charged a premium price for compensation on risk of early death. The insurance
company have the rights to choose to exclude coverage illnesses that you have
been diagnosed with. Thus, do remember that the younger you are, the cheaper
your premium will be.

4. Longer loan
tenure

You can begin researching on property investment -
ideal location and development type to invest on. The maximum loan
tenure given out by banks is 35 years. However, for borrowers who are 30
years old and above, the maximum tenure is tied to their age. Thus, their home
loans will have to be repaid before they reached 65 or 70 years of age. Those
in their 20s have the privilege of stretching their loan tenure to the maximum
and paying lesser monthly installments. This shows that it is much cheaper to
buy property in your 20s than at a later age and your chances of getting loan
approved are a lot higher than those in your 40s.

5. Greater
flexibility to get creative with your finances

The benefit of retiring early is that it gives you
better flexibility in terms of financial, you can explore and be creative with
other investment options out there. It also gives you room to diversify your
investment and significantly beat the inflation rate. For example, you can use
an amount of your money to invest in mutual fund and also invest in property.
Selecting the right property is crucial in not only ensuring that your
investment is suitable to live in your retirement years, but it also enable you
to capitalize on rental yield in years leading to that.

January 1, 2019

When it comes to selling your home, it can be time-consuming for first-timer. Besides, it can be emotionally exhausting and challenging if during the process of selling is handed roughly which might end you up in small claims tribunal. When you end up in small claims tribunal, you will end up wasting more time and effort to claim from the dispute between you and the seller.

However, there could be reasons why such incidents happened, some of which can be the house owner’s mistakes itself. Here are some of the common mistakes to avoid if you want to close the deal in the quickest and smoothest way possible.

1. Totally forgotten to clean your house for viewing

First impression matters - the classic advise for everyone, be it for first date or first viewing with potential buyers. You will be able to confidently convince your buyer by saying that the house will be guaranteed clean when they move in. On the contrary, if the house is a messy and dirty one, the first reaction they will give is shock and disgust, there goes your potential buyer. But, do take note that all the houses put for sale in the market are competing with one another. Some of these houses have been renovated and cleaned up for viewing, so those not tidied up will look less attractive. For house owners who are pet lovers, ensure that the compound is clean as well. It would be a deal breaker if the buyer were to step on the droppings or seeing pet’s fur on the floor.

2. Sky high property price

Every seller has the intention to maximise their profit when you get rid of your house, but if you price your property at an outrageous rate which immediately turns down your potential buyers. Many sellers think that marking up the price will leave more room for bargaining when the buyers asks for discount, however they fail to realise that the price tag is too high and it can be a mistake. House hunters would be reluctant to approach the seller if they knew the price is way out of their budget. This might result your house being on the market for a long time. After a long period, if there’s no interested buyer ringing your door bell, perhaps you may consider to adjust your pricing lower.

3. Engaging the wrong agent

If you think of skipping in engaging an agent, that could be a big mistake. However, hiring a wrong agent is going to cost you big headaches and heartaches. Most property owners will pick the agent that gives them the highest price and experienced agent with the best marketing strategy and plan to sell your property. In that case, your requirement of engaging an agent is an agent that has working experience in the area in which the property is situated and have a depth of knowledge on the property market.

4. Going for ‘hard sell’ approach

There are times if you tried too hard, that’s when things don’t work out. The same logic apply to property selling. Opting to use ‘hard sell’ approach can lead to potential buyers finding you annoying and irritating. No one wants to be pushed and forced to make such an important decision quickly. Thus, if you keep calling them or constantly telling them the good features of the property, then they might immediately say no to you because overselling is always a bad idea.

5. Taking bad quality pictures of the property

We all do know that first impression matters. In the age of internet, most of the house hunters will either look for a house on the line or at least do a quick research at property websites. If the house looks unattractive, they may not even bother to drive to the location for viewing. After all, a picture worth more than a thousand words. Avoid taking your property pictures in low resolution, dim lighting and awkward angles. Such images can immediately turn off buyers. It is also important to use a good camera and if you have the budget, you can consider hiring a professional photographer that specializes in taking property photos. Don’t forget that picture sells. Click hereto see tips on taking property photos.